1. introduction
Accounting systems in Saudi Arabia was shown to be imported from developed countries. Although in Saudi Arabia, the accounting principle and structures were primarily constructed from Western countries, the new accounting system has been reformed to adapt the unique Saudi Arabian environment. The various factors might explain how the new accounting system emerges. This paper will analyze how the three main factors-economy environment, taxation policies and foreign accounting standards and principles affect accounting systems in Saudi Arabia.
2. Economy environment
The commodities of the natural resources have enormous impact on accounting system in Saudi Arabia. Nature products involve minerals, oil and nature gas. According to the Organization of the Petroleum Exporting Countries (OPEC, 2013), 18% of the world’s proven petroleum was discovered in Saudi Arabia. Saudi Arabia now ranks as the largest exporter of petroleum (OPEC, 2013). The oil and gas account for nearly 50 per cent of gross domestic product. Although Saudi Arabia has the largest continuous sand desert all around the world, the earnings of oil and gas occupy most of its export revenues. Because the national revenue in Saudi Arabic rely on the export of petroleum, the revenue valuation focus on the annual production and the global price fluctuation, which is different from other developed countries like U.K. and U.S.A.
Before the oil was discovered in Saudi Arabic, the accounting system did not record the oil revenue. At that time, Saudi Arabic was highly dependent on the basic activities, such as fishing, pearling, agriculture, ship-building and commerce. Although people record the amount or the volume of each production they made in different...
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... Accounting and Finance, School of Management The University of Hull
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In order to ensure an organization’s financial order, auditors with international standards are a vital part. However, very few auditing companies exist in Afghanistan that can provide auditing services in compliance with international accounting standards. Fortunately, ACC is one of those few auditing firms that can confidently say that its auditing services are in the highe...
The composition of GDP by Industry is 66. 9% in Saudi Arabia, which is four times greater than the United States as the GDP by industry in the United States is just 19. 1%. The per capita Gross Domestic Product in Saudi Arabia is $22, 939. 18, whereas, in the United States, it is $ 45, 759.46 per capita. Thus, the per capita GDP in the United States is twice as much as the per capita GDP of Saudi Arabia. The GDP by purchasing power parity is $ 883. 70 in the Saudi Arabia, whereas, it is $ 16. 24 in the United States, which is 18 times greater than the GDP by purchasing power parity of the Saudi Arabia (CIA,
Australian bookkeeping gauges are set by the Australian Accounting Standards Board (AASB) and have the power of law for Corporations law elements under s 296 of the Corporations Act 2001. They should likewise be connected to all other universally useful monetary reports of reporting elements in general society and private parts.Australian Accounting standards board oversee process of accouting standards if all companies registerd with ASIC complying with these standards and their financial reports are maintend with standards to keep public share holders money in safe hand in past many auditors companies used to ignore accounting standards to give companies actual financial figuers lower or higher to keep their shares prices or investors intact this lead to so many financial crises and collapse of comapanies.The case analyses the high standards required by the accounting profession in line with the requirements of the Australian Standards Board prescription. Further, the case is analyzed technically in line with the accounting standards prescribed by the institute. Here, an employee accountant of a company is asked to iron out the
Wolk, H., Dodd, J., & Tearney, M. (2003). Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South-Western College Pub.
Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254.
I am going to demonstrate that there are at least three major flaws in Omar Abdullah Zaid’s article. First, the financial records that he claims were developed around 622 AD by the Muslims were in fact in existence thousands of years prior to that date. Secondly, much of his article is based on his and others opinions of what accounting records were developed, but he proves no evidence that these originated from the Muslim culture. Thirdly, the journals or lists that he discusses as the basis for accounting records are not the same as the double entry accounting system that Luca Pacioli became famous for in the 15th century.
The main and the most important problem of Saudi Arabia's economy is a strong dependence on the oil sector. The oil sector accounts for about 58% of GDP. In this regard, appears the question of economic diversification. The development of diversification plan began in 1996, according to the second five-year plan of economic development. However, the plan still has not brought significant results (you can see it from the statistics in the appendix). One of the key points of the economy's diversification is the development of the gas sector. Saudi Arabia is ranked sixth in the world reserves of this type of fuel (which is 3.9% of the world's reserves), but this sector remains undeveloped. The Government is making big bets on the development of gas, as they suppose it will help Saudi Arabia to become less dependent on oil. But the development of the gas industry will not help Saudi Arabia to diversify its economy, because this industry is related to the oil and will only aggravate the kingdom dependence on hydrocarbons .
Saudi Arabia is a primarily oil-based economy, with oil being the most important component of the nation’s rapid economic development since World War II. U.S. geologists discovered oil in the region in the 1930s, and since exports expanded most notably in the 1960s, production and rich revenues have been seemingly limitless. The amount of oil in Saudi Arabia’s reserves amounts to close to a quarter of the world’s entire oil resources, and today the country produces about 10,000 barrels a day. As a result, the valuable resource currently accounts for 90% of the country’s exports and contributes to 75% of government revenues annually. During the 1970s, following the Arab-Israeli war, Saudi Arabia’s economy was one of the fastest growing in the world due to a sharp increase in the value of petroleum.
Oil has often been described as a ‘transforming force’, and this description is easy to apply to Saudi Arabia. Prior to World War 2, government yearly revenues barely reached half of a million dollars (Mansfield, A History of the Middle East, 1991, p. 281). By 1950, revenues were up to $56 million, and by 1956, they were at an unprecedented $200 million.
Saudi Aramco is the largest producer of crude oil in the world. They account for the majority of the world’s crude oil and natural gas exports. The company is great. They treat their employees well and they look out for the environment. The company’s home office is located in Dhahran, Saudi Arabia and employees millions of people. The company is valued at ten trillion dollars and that amount climbs daily. The company has the world’s largest crude oil reserve that has an estimated two hundred and sixty billion barrels. Saudi Aramco produces more than twelve million barrels of crude oil a day. This is more than any other oil company on the globe. Though they produce large amounts of crude oil, the company is looking for other ways to be more sustainable.
... has contributed to higher volumes of production. Saudi Arabia is endowed with large deposits of limestone making it a suitable location for cement manufacturing. Proximity to the source of raw materials also reduces the transport cost.
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
Businesses in United Arab Emirates operate at very advanced level. However, United Arab Emirates (UAE) lacks her own accounting standards. You find that most of the principles used in accounting and auditing results from the firms that carry out this practice in this country. It is therefore the mandate of these accounting/auditing firms to employ International Financial Reporting Standards (IFRS) in their operations to attain credibility. With most corporations being owned by both residents and non residents of UAE, application of the IFRS becomes very practical to everyone. The diversity in ownership of businesses in UAE gives every reason as to why audit is a fundamental tool that is being made use of in this country. The benefits accrued to this aspect are incredible and this paper endeavors to explore the auditing functions pegged in this culturally diverse business environment based in Dubai.
This paper discusses various cultural aspects that have influenced accounting in different countries. Accounting purposes have also changed over time. Religion is more than a belief, it involves unique practices and perspectives in accounting. Next we will discuss how these cultural differences will impact the two accounting standards. Last, this paper will talk about the contemporaty trend of accounting standards ad how China will face the change.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development